Key Insights
- On-chain development activity is one of the most reliable indicators of long-term value.
- However, this indicator is often overlooked for other mainstream technical indicators.
- In a recent tweet, Santiment pointed out some of the most interesting networks in terms of on-chain activity.
- Some of these include Hedera, Deep, Cardano and Ethereum while the worst performing ones include Chainlink, and Starknet.
- Most of these cryptocurrencies have open chances for bullish comebacks.
Bitcoin recently ended a four-day losing streak from last week.
Amid this comeback, several cryptocurrencies seem to be heavily poised for recovery, according to Santiment in a recent tweet.
Here are some of the best performing cryptocurrencies over the last 30 days, in terms of development activity.
Santiment’s Analysis And Why Development Activity Matters
Network activity isn’t exactly the go-to metric when trying to determine the price trajectory of a cryptocurrency.
However, this metric is still highly important.
For example, a blockchain with superb development activity is usually one with long-term viability.
This means that its development team has big plans for its future, and are working tirelessly towards these goals.
Another important part about this metric is that it differenciates projects with organic growth, as opposed to projects with hype-driven growth.
This week, on-chain analytics platform Santiment drew attention to seven of these crypto networks, ranking them in terms of development activity.
According to the on-chain analytics platform, some of the best performing assets include Hedera, Cardano, Ethereum and $DEEP, with the strongest contributions on GitHub over the last 30 days.
Some of the decliners included ICP, Kusama, Polkadot and Optimism with the projects that remained relatively unchanged being Chainlink, and Starknet.
Here’s a little more in-depth research about these cryptocurrencies, and what to expect.
The Best Performing Assets
According to Santiment in the accompanying blog post with this tweet, “The more development activity a project has, the greater the chances are that their product will grow and be adopted by the users.”
In essence, measuring best performing projects could be an indicator of where to invest in (or where not to).
With this being said, here are the best performers:
- Internet Computer (ICP)
According to CoinMarketCap, Internet Computer has been down by around 4% over the last 24 hours, as well as a 10% price decline over the last week.
Interestingly, while the Internet Computer team has been contributing to its GitHub Repository over the last month, ICP has been on a 16% decline over the same timeframe.
According to the charts, Internet Computer has been in a decline for this long, because it broke below the ascending trendline shown above.
This breakdown shows that the bears took control and drove the cryptocurrency’s price to a low of $8 on 27 January.
This said, the bulls appear to be defending this price level strongly, and might be able to stage a rebound from $8 towards $15 or higher.
Investors must keep in mind that any breaks below $8 will lead to further bearish sentiment.
- Hedera (HBAR)
Hedera has also been bearish over the last 24 hours, losing nearly 6% of its value.
The cryptocurrency is down by around 7% as well on the weekly timeframe. However, Hedera reflects the development activity on its network perfectly, with a 9% price increase over the last month.
The charts show that the cryptocurrency recently lost the $0.31 support and crashed lower to its 50-day EMA as shown:
The bulls appear to have taken control though, and are holding Hedera up into a possible rebound from current price levels.
The cryptocurrency will need a break above $0.31 once again, to challenge higher price levels like its $0.4 local high or higher.
- Cardano (ADA)
Cardano is also as bearish as the other two, with a 5% decline over the last day and an 8% price decline over the last week.
However, the last month has seen a 7% price increase that also reflects its rise in development activity.
In the charts, Cardano appears to have broken below a symmetric triangle on its daily chart, and appears to have found support at the 78.6% Fibonacci retracement level around $0.87.
This said, the bulls appear to be taking advantage of this, and are staging a comeback into the triangle.
If the bulls succeed at re-entry, Cardano could consolidate for a while longer, before shooting up to $2 or higher.
- Ethereum
Ethereum has severely underperformed compared to Bitcoin over all timeframes.
The cryptocurrency trades at an intra-day decline of around 3% and has come dangerously close again to the $3,000 zone.
Ethereum is nursing a 6.4% decline on the weekly timeframe, and is down by around 8% over the last month.
The cryptocurrency appears to be stuck underneath its 50-day EMA compared to the other cryptocurrencies on this list, but is trading close to the bottom of a medium-term falling wedge formation.
Historically, falling wedges are bullish formations and could lead to a comeback for Ethereum if the bears do not manage to pull prices lower than the $3,000 zone.
Any such rebounds for Ethereum could lead it straight up towards the $3,500 zone:
Which might open the gates for $4,000 to come in.
- Deep Book (DEEP)
This relatively unknown underdog is the worst performer in terms of daily price action.
The cryptocurrency has lost a staggering 11% over the last 24 hours, along with a 25% dump over the last week.
However, the cryptocurrency shines far brighter than the rest, with a 140% price increase over the last month.
According to the charts, DEEP has been the true definition of “parabolic” since its launch.
The daily chart shows an almost vertical price action as illustrated.
However, the cryptocurrency declined strongly after hitting a high of $0.35. This decline brought it into a retest of its 50-day EMA, and the cryptocurrency has a fair chance at recovery.
Said EMA sits around $0.176 and investors must keep an eye out for what happens here.
If the cryptocurrency breaks below this EMA, its outlook could turn bearish as more decline follows.
On the flip side, a rebound from this price level could lead to shoot-up towards the $0.5 price level or even higher.
